Title
Ordinance to Amend and Reenact Chapter 2 of the City Code of the City of Hampton, Virginia, titled “Administration” by Amending Article XIV, Division 1, Section 2-336.1 titled “Same - Design-Build and Construction Management Contracting”
Purpose
PURPOSE/BACKGROUND:
See Discussion.
Discussion:
During the September 10, 2025 Work Session, City Council received a staff briefing regarding alternate methods to procure the design and construction of public infrastructure projects, including "design-build" and "construction manager at risk" ("CMAR"). Historically, the City has used the design-bid- build process to acquire those services, the result of which is two separate contracts with two separate parties, one for professional design services and another for construction in accordance with the design. Alternatively, (i) the design-build method results in a single contract under which the same party agrees to design and build a project; (ii) CMAR results in a contract under which the City can retain a party to coordinate and administer contracts for construction services, and may also include the performance construction services. Those methods are available when traditional design-bid-build is not practical or fiscally advantageous. Through the staff briefing, Public Works identified projects for which either design-build or CMAR would be the most practical and fiscally advantageous for the City. City Council was receptive to the recommended approaches for those projects.
The authority for local public bodies to utilize design-build and CMAR is primarily set forth in Code of Virginia Sec. 2.2-4382. The City first enacted an ordinance pursuant to that authority in 2018; however, the Virginia Code requirements have changed since that time. Therefore, Council needs to update the City's procurement ordinance before those alternative methods can be utilized. During the May 13, 2026 Legislative Session, there will be four, separate, but related actions on the agenda, as follows: (1) an ordinance amendment to Hampton City Code Section 2-336.1, titled "Same - Design-build and construction management contracting"; (2) a resolution to adopt procedures required by the Code of Virginia; (3) a resolution to approve the use of design-build for the Mellen Street Sewer Gravity Replacement Project; and (4) a resolution to approve the use of CMAR for certain force main replacements.
Impact:
See Discussion.
Recommendation:
Rec
Approve the Ordinance Revision.
Body
BE IT ORDAINED by the City Council of the City of Hampton, Virginia, that Chapter 2 Article XIV, Division 1, Section 2-336.1 of the City Code of the City of Hampton, Virginia entitled “Administration” is amended and reenacted to read as follows:
CHAPTER 2 - ADMINISTRATION
. . .
ARTICLE XIV. - PROCUREMENT OFFICE
DIVISION 1. - GENERALLY
. . .
Sec. 2-336.1. Same-Design-build and construction management contracting.
(a) Pursuant to Code of Virginia chapter 43 § 2.2-4302, as it may be amended from time to time, the provisions of Code of Virginia chapter 43.1 §§ 2.2-4378, 2.2-4379, 2.2-4382, and 2.2-4383, as those sections may be modified or amended from time to time, related to governmental procurement of construction utilizing the design-build and construction management procurement methods, as those sections may be amended from time to time, are incorporated herein by this reference.
(b) Notwithstanding subsection (a) of this section, whenever any provision of those sections incorporated thereby are modified or amended by any other section of the city code, or by any rule, regulation, policy, procedure, or administrative directive, such provision shall be interpreted and implemented as modified or amended.
(c) Design-build and construction management contracting methods are authorized as follows:
(1) The city may enter into a contract for construction on a fixed price or not-to-exceed price construction management or design-build basis, provided that the requesting city department (i) has received city council approval, as per subsection (c)(2); (ii) complies with the requirements of Title 2.2, Subtitle II, Chapter 43.1, Article 4 of the Code of Virginia, as it may be amended from time to time; and (iii) complies with procedures implemented by city council by ordinance or resolution that are consistent with the procedures adopted by the Secretary of Administration of Virginia for utilizing construction management or design-build contracts.
(2) City council shall approve, by resolution or motion, in a public forum, each project for which a city department is requesting to use construction management or design-build, prior to the issuance of a request for qualifications. A city department’s request for city council approval pursuant to this subsection shall include the writing required subsection (c)(4).
(3) Prior to making a determination as to the use of design-build or construction management for a specific construction project, the city shall have in its employ or under contract a licensed architect or
engineer with professional competence appropriate for the project who shall (i) advise the city regarding the use of design-build or construction management for that project; and (ii) assist the city with the preparation of
the request for proposal and the evaluation of such proposals.
(4) A written determination shall be made in advance by a city department that includes: (i) an explanation of why the design-bid-build project delivery method is not practicable or fiscally advantageous; and (ii) the basis for the determination to utilize construction management or design-build, including a determination that the project is a “complex project,” as defined by Code of Virginia §2.2-4379. This determination shall be included in the request for qualifications and be maintained in the procurement file.
(5) Procedures adopted by the city for construction management or design-build pursuant to this section shall include, in addition to the other requirements set forth in this section:
a. Construction management or design-build may be utilized on projects, provided that the requesting department has complied with the requirements of section (c);
b. Public notice of the request for qualifications is posted on the Department's central electronic procurement website known as eVA, or the City’s own website, at least 30 days prior to the date set for
receipt of qualification proposals;
c.The construction management contract is entered into no later than the completion of the schematic phase of design, unless prohibited by authorization of funding restrictions;
d.Prior construction management or design-build experience or previous experience with the city shall not be considered as a prerequisite or factor considered for prequalification of a contract. However, in the selection of a contractor, the city may consider the experience of each contractor on comparable construction management or design-build projects;
e.Construction management contracts shall require that (i) no more than 10 percent of the construction work, as measured by the cost of the work, be performed by the construction manager with its own forces and (ii) the remaining 90 percent of the construction work, as measured by the cost of the work, be performed by subcontractors of the construction manager, which the construction manager shall procure by publicly advertised, competitive sealed bidding to the maximum extent practicable. The provisions of this subdivision shall not apply to construction management contracts involving infrastructure projects;
f. The procedures allow for a two-step competitive negotiation process;
g.Price is a critical basis for award of the contract; and
h. The procedures allow the city to post on the Department's central electronic procurement website known as eVA, or the City’s own website, when and where the general contractor plans to advertise bid packages for subcontracting opportunities when appropriate.
(6) In addition to the requirement set forth in 4(e), the two-step competitive negotiation process for design build construction projects shall be consistent with the standards established by the Division of Engineering and Buildings of the Department for state public bodies.